Q2 2024 Banco BBVA Argentina SA Earnings Call

August 22, 2024

Speaker Change: [music].

Operator: Good morning, ladies and gentlemen, and thank you for waiting.

Operator: Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's second quarter 2024 Results Conference Call. We would like to inform you that this event is being recorded, and all participants will be in listen-only mode during the company presentation. After company remarks are completed, there will be a question-and-answer section. At that time, further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator.

Good morning, ladies and gentlemen, and thank you for waiting at this time, we would like to welcome everyone to BBVA Argentina's second quarter 'twenty 'twenty four results conference call. We would like to inform you that this event is being recorded and all participants will be in listen only mode.

Operator: At this time, we would like to welcome everyone to BBVA Argentina's second quarter 2024 results conference call.

Operator: We would like to inform you that this event is being recorded, and all participants will be in listen only mode during company presentation.

Speaker Change: Company presentation.

Operator: After company remarks are completed, there will be a question and answer section. At that time, further instructions will be given.

Speaker Change: After company remarks are completed there will be a question and answer section.

Speaker Change: At that time further instructions will be given should any participant need assistance. During this call. Please press star zero to reach the operator.

Operator: Should any participant need assistance during this call, please press star zero to reach the operator.

Operator: First of all, let me point out that some of the statements made during, the conference call may be forward looking statements within the meaning of the safe harbor provisions found in Section 27A of the Securities Act of 1933 under U.S. federal securities law. These forward looking statements are subject to risks and uncertainties, that could cause actual results to differ materially from those expressed in the forward looking statements.

Operator: First of all, let me point out that some of the statements made during the conference call may be forward-looking statements within the meaning of the Safe Harbor provisions found in Section 27A of the Securities Act of 1933 under U.S. Federal Security's Law. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information concerning these factors is contained in BBVA Argentina's annual report on Form 20-F for the fiscal year 2023 filed with the U.S. Securities and Exchange Commission.

Speaker Change: First of all let me point out that some of the statements made during the conference call may be forward looking statements within the meaning of the Safe Harbor provisions found in section 27 eight of the Securities Act of 1933 under U S. Federal Securities Law. These forward looking statements are subject to risk.

Speaker Change: And uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements. Additional information concerning these factors is contained in BBVA. Argentina's annual report on form 20-F for the fiscal year 'twenty twenty-three filed.

Operator: Additional information concerning these factors is contained in BBVA, Argentina's annual report on Form 20-F for the fiscal year, 2023 filed with the U.S. Securities and Exchange Commission.

Speaker Change: With the U S Securities and Exchange Commission.

Operator: Today with us, we have Miss Carmen Morella-Arollo, CFO, Ms. Ines Blenuse, IRO, and Ms. Bellin Forkada, Investor Relations.

Operator: Today with us, we have Ms. Carmen Morela Arroyo, CFO, Ms. Ines Lanuce, IRO, and Ms.

Speaker Change: Today with US we have Mrs.

Speaker Change: Carmen Morella Araujo CFO Mrs Ines.

Speaker Change: I R O and Miss Berlin for Cotter Investor Relations. Mrs. For Carter you May begin your conference.

Operator: Belen Forcada, Investor Relations.

Belen Forcada: Ms. Forcada, you may begin your conference.

Bellin Forkada: Ms. Forkada, you may begin your conference.

Bellin Forkada: Good morning and welcome to VVR Argentina's second quarter 2020 for result conference call. Today's webinar will be supported by a slide presentation available on our Investor Relations website in the financial information section.

Belen Forcada: Good morning and welcome to BBVA Argentina's second quarter, 2024 result conference call.

Speaker Change: Good morning, and welcome to easy Argentina second part I couldn't do something foreign trade concerns upon.

Belen Forcada: Today's webinar will be supported by a slide presentation available, on our Investor Relations website on the financial information section.

Speaker Change: Today's webinar will be supported by a slide presentation available on our Investor Relations website on the financial information section.

Bellin Forkada: Speaking during today's call will be Ines Blenuse, our Investor Relations Officer, and Carmen Morella-Arollo, our Chief Financial Officer, who will be available for the Q&A session.

Belen Forcada: Speaking during today's call will be Ines Lanuce, our Investor Relations, officer, and Carmen Morizo Arroyo, our Chief Financial Officer, who will be available for the Q&A session.

Jose: During today's call it will be in San Jose or Investor Relations Officer.

Gotham Multishot: Got him in Multishot, Russell, our Chief Financial Officer, who will be available for Q&A session.

Operator: Please note that starting January 1, 2020, as per central bank regulation, we have begun reporting results, applying hyperinflation accounting, pursuant IFRS rules, IAS 29. For instance, from Parability 2020, 2023, and 2024, figures have been restricted to reflect the accumulated effect of inflation adjustment for each period through June 30, 2024.

Belen Forcada: Please note that starting January 1st, 2020, as per central bank regulation, we have begun reporting results applying hyperinflation accounting pursuant to IFRS rule IAS 29. For ease of comparability, 2023 and 2024 figures have been restated, to reflect the accumulated effect of inflation adjustment for each period through June 30th, 2024.

Speaker Change: Please note that starting January Cy 'twenty 'twenty, that's both central Bank regulation, we have begun reporting results applying hyperinflation accounting, but if you want the ISR is really I think nine.

Speaker Change: We have some favorability 'twenty three and 'twenty 'twenty four figures have been restated to reflect the accumulated effect of inflation adjustment for each banner to jumpstart yet 295.

Ines Blenuse: Now, let me turn the call over to Ines. Thank you, Bellin, and thank you all for joining us today. In the second quarter of 2024, the significant fiscal consolidation, the relative effects rate stability, and the sharp contraction in economic activity have led to a gradual moderation of inflation in recent months. Despite the uncertainty and related risks, according to the VA research, it is likely that these ongoing adjustments, eventually complemented by additional measures, could set the basis for an inflation slowdown along the year.

Belen Forcada: Now, let me turn the call over to Ines.

Speaker Change: Now, let me turn Nikola electric.

Ines Lanusse: Thank you, Belen, and thank you all for joining us today.

Nikola: Thank you Lynn and thank you all for joining us today in the second quarter of 2024, the significant fiscal consolidation there relative to ethics rate stability and a sharp contraction.

Ines Lanusse: In the second quarter of 2024, the significant fiscal consolidation, the relative FX rate stability, and the sharp contraction in economic activity have led to a gradual moderation of inflation in recent months. Despite the uncertainty and related risks, according to BBVA research, it is likely that these ongoing adjustments, eventually complemented by additional measures, could set the basis for an inflation slowdown along the year.

Can you teach have led to a gradual moderation of inflation in recent months.

Speaker Change: Despite the uncertainty related risks according to V. A research it is likely that these ongoing adjustment eventually complemented by additional measures could set the basis for an inflation slowed down along the year on the other hand, although deterioration of economic activity.

Ines Lanusse: On the other hand, although the deterioration of economic activity, could be reversed by mid-year, it is expected that after falling by 1.6% in 2023, GDP will decrease by 4% in 2024.

Ines Blenuse: On the other hand, although the deterioration of economic activity could be reversed by nearly a year, it is expected that after falling by 1.6% in 2023, GDP will decrease by 4% in 2024. and 135% inflation is expected by 2024 year end, with a downward tendency versus 211% as of December 2023. Now, moving into business dynamics, as you can see on slide 3 of a webcast presentation, a service offering has evolved in such a way that by the end of June 2024, new customers to the physicians' digital channels reach 81% versus 76% a year ago. The response on the side of customers has been satisfactory, and we are convinced this is the path to pursue in the aid of sustaining and expanding our competitive position in the financial system.

Speaker Change: It could be with us I E. R. It is expected that after falling by one 6% in 2000 and E. G. D. P will decrease by 4% in 2024.

Ines Lanusse: And 135% inflation is expected by 2024 year-end, with a downward tendency versus 211% as of December, 2023.

Speaker Change: And 135% inflation is expected by 2000, and some before year end with a downward tendency versus 211 voice and as of December 20th century.

Ines Lanusse: Now, moving into business dynamics, as you can see on slide three of our webcast presentation, our service offering has evolved in such a way that by the end of June, 2024, new customers acquisitions to digital channels reach 81% versus 76% a year ago.

Speaker Change: Now moving into business dynamics, and you can see on slide three of our webcast presentation are service offering has evolved in such a way that by the end of June 24, new customers acquisition to digital channels reached 81% that just 76% a year ago.

Ines Lanusse: The response on the side of customers has been satisfactory, and we are convinced this is the path to pursue in the aim of sustaining and expanding our competitive position in the financial system. Retail digital sales measured in units, reach 93.1% in the second quarter of 2024 and represent 74% of the bank's total sales measured in monetary value.

Speaker Change: That response on the side of customers has been satisfactory.

Alright convinced this is a basketball shoe.

Speaker Change: Our sustaining and expanding our competitive position in the financial system.

Ines Blenuse: Retail digital sales measures in units reach 93.1% in the second quarter of 2024 and represent 74% of the bank's total sales measured in monetary value.

Speaker Change: Retail digital sales measure the unit.

93, 1% in the second quarter of 2004 and represents 74% of the banks felt unsafe measure in monetary value.

Ines Blenuse: Moving to slide 4, I will now comment on the bank's second quarter of 2024 financial results. BBVA Argentina, 2nd quarter of 2024 net income was 112.9 billion pesos, increasing 178.8% quarter of a quarter. This implied a quarterly ROE of 19.5% and a quarterly ROE of 4.7%. On the other hand, operating income in the second quarter of 2024 was 446.7 billion pesos, 40.3% lower quarter of a quarter. This fall in the quarterly operating result is explained by a lower operating income. Mainly due to one lowering for income, basically due to the decline in the monetary policy rate, two lower results from right down of assets at a mortified cost and a fair value to OTI in particular due to the contrast generated by the sales of CPI linked bonds in the first quarter of 2024 and followed by three higher loan loans allowances in line with the growth in real terms of the loan portfolio.

Ines Lanusse: Moving to slide four, I will now comment on the bank's second quarter 2024 financial results.

Speaker Change: Moving to slide four I will now comment on the banks second quarter 2024 financed or we thought.

Ines Lanusse: BBVA Argentina, second quarter 2024, net income was 112.9 million pesos, increasing 178.8% quarter over quarter. This implied a quarterly ROE of 19.5% and a quarterly ROA of 4.7%.

Speaker Change: BBVA Argentina's second quarter 2024, net income was 100 and plus four 9 billion pesos, increasing $178 eight and well before this implied a poorly I really well, 19.5% and accordingly, our away on for Seth.

Speaker Change: Yeah.

Ines Lanusse: On the other hand, operating income, in the second quarter of 2024 was 446.7 billion pesos, 40.3% lower quarter over quarter. This fall in the quarterly operating result, is explained by a lower operating income, mainly due to one, lower interest income, basically due to the decline in the monetary policy rate, two, lower results from write down of assets at a more precise cost and a fair value to OCI, in particular, due to the contrast generated by the sale of CPI linked bonds in the first quarter of 2024 and followed by three, higher loan loss allowances in line with the growth in real terms of the loan portfolio.

Speaker Change: On the other hand operating income in the second quarter of 2019 inch or one 440 617 billion pesos, 43% lower quarter over quarter. This boy in the quarterly operating results.

Speaker Change: Lower operating income mainly due to one no. Other interest income basically you does that imply the monetary policy rate to know what besides from write down of assets and I'm watching ice class and that's yeah that used to OCI in particular due to the Congress generated by defense.

Speaker Change: C P I think bonds in the first quarter.

Speaker Change: For followed by three high or no no allowance is in line with the growth in real terms.

Speaker Change: Yeah.

Ines Blenuse: Net income for the period was highly impacted by income from net monetary position. Inflation on the 2nd quarter of 2024 was 18.6%, much lower than the first quarter of 2024, 51.6%. Consequently, the income from net monetary position line recorded a 59.9% lower loss on the previous quarter, having a positive impact in the net income comparison. Turning into the PNL lines is like 5 net income in the 2nd quarter of 2024 was 678.6 billion pesos, falling 27.4% quarter of a quarter. In the 2nd quarter of 2024, interest income in monetary terms decreased more than interest expenses.

Ines Lanusse: Net income for the period was highly impacted, by income from net monetary position.

Speaker Change: Net income for the period was highly impacted by income from net monetary decision inflation on the second quarter of 2024 was $18, 6% much lower than the first quarter.

Ines Lanusse: Inflation on the second quarter of 2024 was 18.6%, much lower than the first quarter 2024, 51.6%.

Speaker Change: And then in 'twenty 451, 6%.

Ines Lanusse: Consequently, the income from net monetary position line, recorded a 59.9% lower loss than the previous quarter, having a positive impact in the net income comparison.

Speaker Change: Consequently, the income from net monetary position line recorded a 59, 9% no. We're now in the previous quarter, having a positive impact in the net income comparison.

Ines Lanusse: Turning into the P&L lines in slide five, net interest income in the second quarter of 2024 was 678.6 billion pesos, falling 27.4% quarter over quarter.

Speaker Change: Turning into the P&L lines, it's like five net interest income in the second quarter of 2000, and spud before was $678 6 billion pesos falling 27, 4% quarter over quarter in the second quarter of 2000 and said before interest in monetary terms.

Ines Lanusse: In the second quarter of 2024, interest income in monetary terms decreased more than interest expenses. The former fall was due to a lower income from loans, repos, and CPI linked bonds. The latter is explained by lower expenses, on checking accounts, time deposits, and event spent accounts. In the second quarter of 2024, interest income totaled 973.3 billion pesos, falling 35.7% compared to the first quarter of 2024.

Speaker Change: We more than interest expense.

Ines Blenuse: The former fall was due to a lower income from loan, weeples, and CPI linked bonds. The latter is explained by lower expenses and checking accounts and deposits and events spent accounts. In the second quarter of 2024, in present total 973.3 billion pesos, falling 35.7% compared to the first quarter of 2024. Quarterly degrees is mainly driven by one lower income from loans and two lower income from resources. Both explained by a decline in the monetary policy rates from 80% at the beginning of April to 40% by mid-May and for the rest of the quarter. Also, the decline in the quarter, the inflation costs a decrease in income from CPI link points.

Speaker Change: The form of point you to a lower income from loan we book and C. P. I think bumps the ladder is explained by lower expenses and checking accounts.

Speaker Change: I mean, that's been out now.

Speaker Change: In the second quarter of 2024 interest income totaled 973.3 million pesos falling 35, 7% compared to the first quarter of 2024 quarterly just me, it's mainly driven by one lower income from laws and to nowhere in confirmed weakness.

Ines Lanusse: Quarterly decrease is mainly driven by, one, lower income from loans, and two, lower income from resource. Both explained by a decline in the monetary policy rate from 80% at the beginning of April to 40% by mid-May and for the rest of the quarter.

Speaker Change: Both explained by a decline in the monetary policy rate from 80% at the beginning of April to 40% by mid May and for the rest of the war.

Ines Lanusse: Also, the decline in the quarter, the inflation caused a decrease in incomes and CPI link points.

Speaker Change: Oh, so the decline in the quarter the inflation caused the decrease in income from CPI linked bonds.

Ines Blenuse: Interest expenses totaled 294.7 billion pesos, denoting a decrease of 49.1% quarter of a quarter. Quarterly decline is described by lower checking account expenses. In particular, interest variance checking accounts followed by 10 deposits and investment account expenses due to lower rates in line with the deregulation of minimum 10 deposits rate. Interest from 10 deposits, including investment accounts, explained 64.6% of interest expenses versus 47% in the previous quarter. Net free income as of the second quarter of 2024, total 58.8 billion pesos, falling 1.8% quarter of a quarter. The decline is explained by a greater increase in expenses versus the income in monetary terms. In the second quarter of 2024, the income total 117.7 billion pesos, increasing 90% quarter of a quarter.

Ines Lanusse: Interest expenses totaled 294.7 billion pesos, denoting a decrease of 49.1% quarter over quarter.

Interest expenses totaled $294 7 billion pesos.

Speaker Change: A decrease of 49, 1% quarter over quarter.

Ines Lanusse: Quarter decline is described by lower checking account expenses. In particular, interest bearing, checking accounts followed by time deposits and investment account expenses due to lower rates in line with the deregulation of minimum time deposits rates. Interest from time deposits, including investment accounts, explained 64.6% of interest expenses versus 47% in the previous quarter.

Speaker Change: Your line is describe I know what checking account expense.

Speaker Change: And particularly interest bearing checking accounts, followed by tanker bosses and investment account expenses due to lower rates in line with that deregulation of many of them take deposits right.

Speaker Change: Interest on time deposits, including investment accounts explained 64, 6% of interest expenses, but there's 47% in the previous quarter.

Ines Lanusse: Net fee income as of the second quarter of 2024 totaled 58.8 billion pesos, falling 1.8% quarter, over quarter. The decline is explained by a greater increase in expenses versus fee income in monetary terms.

Speaker Change: Net fee income I thought the second quarter of 2024 totaled $58 8 billion pesos falling 1.8% quarter over quarter. The decline is explained by a greater increase in expenses, that's as fee income in monetary terms.

Ines Lanusse: In the second quarter of 2024, fee income totaled 117.7 billion pesos, increasing 9% quarter over quarter. Improvement in fee income is mainly explained by one, greater fee income from credit cards and two, greater fee income linked to liabilities, mainly account maintenance and abundance.

In the second quarter of 2024 being kind of the.

Speaker Change: $117 7 billion pesos, increasing 9% quarter over quarter improvement in fee income.

Ines Blenuse: Improvement in the income is only explained by one rate of the income from credit cards and two greater fee income linked to liabilities, mainly account maintenance and abundance. On the side of the expenses, these total 58.9% billion pesos, increasing 22.5% quarter of a quarter. These are explained by higher expenses due to processing fees and promotion on debit and credit cards. The second quarter of 2024, loanless allowances increased 30.4% in line with the growth in real terms of the loan portfolio. During the second quarter of 2024, total of rated expenses were 340.8 billion pesos, decreasing 6.6% quarter of a, of which 32% were personal benefits cost.

Speaker Change: It's mainly explained by one rate of fee income from credit card and to wait to see income linked to liabilities, mainly I've called maintained then I'm done.

Speaker Change: On the side don't see expenses. These totaled $58 90 per cent billion pesos, increasing 22, 5% quarter over quarter.

Ines Lanusse: On the side of fee expenses, these total 58.9% billion pesos, increasing 22.5% quarter over quarter. This is explained by higher expenses due to processing fees and promotion on debit and credit cards.

This is explained by higher expenses due to processing fees and promotion on debit and credit cards.

Speaker Change: The second quarter of 2020 for the only loss allowances increased 34% in line with the growth in real terms of the loan portfolio.

Ines Lanusse: In the second quarter of 2024, loan loss allowances increased 30.4% in line with the growth in real terms of the loan portfolio.

Ines Lanusse: During the second quarter of 2024, total operating expenses were 340.8 billion pesos, decreasing 6.6% quarter over quarter, of which 32% were personal benefits costs.

Speaker Change: During the second quarter of 2024, you'll cut operating expenses were 342 points.

8 million pesos, decreasing six 6% quarter over quarter of which 32% with personal benefits cost.

Ines Blenuse: Personal benefits increased 3% quarter of a quarter with wages increasing in line with inflation. As of the second quarter of 2024, administrative expenses fell 4.3% quarter of a quarter. This is mainly explained by one rent to other administrative expenses and the document distribution. The first two are related to an increase in inflation, which was higher than the nominal increase of expenses in software licenses and services contracted with the parent company. Regarding the decreasing document distribution expenses, this is due to the contrast generated by the renovation of card plastics in the first quarter of 2024.

Speaker Change: Personnel benefits increased 3% quarter over quarter with wages, increasing in line with inflation.

Ines Lanusse: Personal benefits increased 3% quarter over quarter, with wages increasing in line with inflation.

Ines Lanusse: As of the second quarter of 2024, administrative expenses fell 4.3% quarter over quarter. This is mainly explained by one, rent, two, other administrative expenses, and three, document distribution. The first two are related to an increase in inflation, which was higher than the nominal, increase of expenses in software licenses and service contracted with the parent company.

Speaker Change: The second quarter of 2020 for administrative expenses fell one 3% quarter over quarter. This is mainly explained by one rent to other administrative expenses N V gel Kaman distribution. The first two are related to an increase in inflation, which was higher than the nominal.

Speaker Change: Police have expenses in software licenses and services contracted.

Speaker Change: With the parent company.

Ines Lanusse: Regarding the decrease in document distribution expenses, this is due to the contrast generated, by the renovation of car plastics in the first quarter of 2024.

Speaker Change: Regarding that equation ducking and distribution expenses. This is due to the contract generated by that regulation of court plastics in the first quarter of 2024.

Ines Blenuse: The quarterly efficiency ratio as of the second quarter of 2024 was 55.3%, improving versus the 65.4% reported in the first quarter of 2024 and above the 52% reported in the second quarter of 2023. The quarterly decrease is explained by a greater increase in the denominator than the numerator, especially due to lower quarterly inflation. In terms of activity on site 6, private sector loans of the second quarter of 2024 total 3.9 trillion pesos, increasing 23.1% in real time. Lones to the private sector in base of increased 24.2% in the second quarter of 2024. During the quarter, growth was driven by a 28.6% increase in discounted instrument, followed by a 14.3% increase in credit cards, a 37.3% increase in overdraft, and an increase in consumer loans.

Speaker Change: The Florida yesterday shouldn't see Rachel I thought the second quarter of 2024. It was 55, 3% improving versus the 65, 4% reported in the first quarter of 2000, and I've said before I, let Bob a 62% reported in the second quarter of 2023.

Ines Lanusse: The quarterly efficiency ratio as of the second quarter of 2024 was 55.3% improving versus the 65.4% reported in the first quarter of 2024, and above the 52% reported in the second quarter of 2023. The quarterly decrease is explained by a greater increase in the denominator, than the numerator, especially due to lower quarterly inflation.

Speaker Change: The quarterly decrease is explained by a great there increase the denominator than the numerator, especially due to lower quarterly inflation.

Ines Lanusse: In terms of activity, on slide 6, private sector loans as of the second quarter of 2024, totaled 3.9 trillion pesos, increasing 23.1% in real terms. Loans to the private sector in pesos increased 24.2% in the second quarter of 2024.

Speaker Change: In terms of activity like six private sector loans as of the second quarter of 2024 totaled $3 93 basis, increasing 21, 1% and we have to.

Speaker Change: Now onto the private sector in pesos increased 24, 2% in the second quarter of 2024, you are in the water well it was driven by a 28, 6% increase in discounted instrument.

Ines Lanusse: During the quarter, growth was driven by a 28.6% increase in discounted instrument, followed, by a 14.3% increase in credit cards, a 37.3% increase in overall trust, and an increase in consumer loans. In all cases, the increment is boosted by genuine growth in real terms of the portfolio, levered on the lower market interest rates.

Speaker Change: By a 14 point people are sending leasing credit cards.

Speaker Change: 37, 3% increase in all of our restaurants, and then increase in consumer loans.

Ines Blenuse: In all cases, the increment is boosted by genuine growth in real terms of the portfolio levered on the lower market interest rates. Lones to the private sector denominated in foreign currency increased 16% quarter of a quarter. Quarterly increased is mainly explained by a 14% growth in financing and pre-financing of exports and a 44% growth in credit cards. During the quarter, the retail portfolio grew 19% and the commercial portfolio increased 26.6%. The commercial portfolio represents 54.7% of total portfolio from 44.9% a year ago. As observed in previous quarters, Loans for a folio were impacted by the effect of inflation during the second quarter of 2024, which reached 18.6%.

Speaker Change: The increment is boosted by genuine growth in real terms of the portfolio never on the lower market interest rates.

Ines Lanusse: Loans to the private sector denominated in foreign currency increased 16% quarter over, quarter. Quarter increase is mainly explained by a 14% growth in financing and pre-financing, of exports and a 44% growth in credit cards.

Speaker Change: No because the private sector denominated in foreign currency increased 16% quarter over quarter quarterly increase is mainly explained by a 14% growth in financing and refinancing of exports and a 44% growth in credit cards.

Ines Lanusse: During the quarter, the retail portfolio grew 19% and the commercial portfolio increased, 26.6%.

Speaker Change: During the quarter their retail portfolio grew 19% on the commercial portfolio increased 26, 6%. The commercial portfolio represents 54, 7% of total portfolio from 44, 9% a year ago.

Ines Lanusse: The commercial portfolio represents 54.7% of total portfolio from 44.9% a year ago.

Ines Lanusse: As observed in previous quarters, loan portfolio were impacted by the effect of inflation during, the second quarter of 2024, which reached 18.6%. In nominal terms, BBA Argentina managed to increase the retail, commercial, and total, loan portfolio by 41.1%, 50.1%, and 45.8% respectively during the quarter, surpassing quarterly inflation levels in all cases. As of the second quarter of 2024, the total loan and other financing over deposit ratio, was 67%, above the 55.9% recorded in the first quarter of 2024, and the 58.2% in the second quarter of 2023.

Speaker Change: As observed in previous quarters young portfolio were impacted by the effect of inflation during the second quarter of 2024, which reached 18, 6% in nominal terms EMEA, Argentina managed to increase the reach and commercial and total loan portfolio by 41.1.

Ines Blenuse: In nominal terms, BVA Argentina managed to increase the retail commercial until the long portfolio by 41.1%, 50.1%, and 45.8% respectively during the quarter. Supposing quarterly inflation levels in all cases. As of the second quarter of 2024, the total loan and other financing over the plastic ratio was 67% above the 55.9% recorded in the first quarter of 2024 and the 58.2% in the second quarter of 2023. Total loan participation over total assets is 40% versus 32% in the first quarter. 34% and a 34% in the second quarter of 2023. BVA Argentina consolidated market share of private sector loans reached 10.54% as of the second quarter of 2024, improving from 9.01% a year ago and sustaining the two digit cities.

Speaker Change: Percent, 51% and 45, 8% respectively. During the quarter, so far I think quarterly inflation levels in all cases.

Although the second quarter of 2010 before the total loans and other financing over deposit ratio was 67% above the 65, 9% reported in the first quarter of 2024 and 58, 2% in the second quarter of 2000 and forgive me.

Ines Lanusse: Total loan participation over total assets is 40%, versus 32% in the first quarter of, 2024, and a 34% in the second quarter of 2023.

Speaker Change: Total loan participation of our total assets is 40% versus 32% in the first quarter 'twenty, four and a 34% in the second quarter, but degree.

Ines Lanusse: BBA Argentina consolidated market share of private sector loans, reached 10.54% as of, the second quarter of 2024, improving from 9.01% a year ago, and sustaining the two-digit cities.

Speaker Change: D as Argentina consolidated market share of private sector loans reached 10, 54% I thought the second quarter of 2000, and something well for improving from nine one.

Speaker Change: A 1% a year ago and sustaining the two digits.

Ines Lanusse: As of the second quarter of 2024, asset quality ratio keeps a very good performance at 1.18% in line with the total loan portfolio growth, and the good behavior of both the commercial and retail portfolios.

Ines Blenuse: As of the second quarter of 2024, asset quality ratio keeps a very good performance at 1.8 percent in line with the total loan portfolio growth and the good behavior of both the commercial and retail portfolio.

Speaker Change: As of the second quarter of 2020 for asset quality ratio keeps a very good performance at one point to 18% in line with the total loan portfolio growth and that could be saved here on both the commercial and retail portfolios.

Ines Blenuse: On the funding side, as of the second quarter of 2024, total deposits reached 5.8 trillion pesos, increasing 2.6% quarter of a quarter. The balance for the third day is market share of private deposits, reached 7.50% as of the second quarter of 2024. Private non-financial sector deposits in pesos, total 4.1 trillion pesos, increasing 6.7% compared to the first quarter of 2024. The quarterly change is mainly affected by a 36% increase in time deposits at a 21% increase in saving accounts, offset by a 19% fall in checking accounts, especially non-interest bearing checking accounts. Private non-financial sector deposits in foreign currency, expecting base of 5.6% order over quarter.

Ines Lanusse: On the funding side, as of the second quarter of 2024, total deposits reached 5.8 trillion, pesos, increasing 2.6% quarter over quarter. The bank's consolidated market share of private deposits reached 7.50% as of the second quarter, of 2024. The non-financial sector deposits in pesos totaled 4.1 trillion pesos, increasing 6.7% compared to the first quarter of 2024. The quarterly change is mainly affected by a 36% increase in time deposits, a 21% increase, in savings accounts, offset by a 19% fall in checking accounts, especially non-interest-bearing checking accounts.

Speaker Change: On the funding side I thought the second quarter of 2024 does have the voltage reached five one day trillion pesos, increasing two 6% quarter over quarter.

Speaker Change: Consolidated market share of private deposits reached seven one just your defense of the second quarter of 2000. This one before.

Speaker Change: Private nonfinancial sector deposits in pesos totaled four 1 billion pesos, increasing $6 Sam boyfriend compared to the first quarter of 2024. The quarterly change is mainly affected by a 36% increase in time deposits at 21% increase in saving them in house.

Speaker Change: By a 19% fall in checking accounts, especially non interest bearing checking accounts.

Ines Lanusse: Private non-financial sector deposits in foreign currency expressed in pesos fell 5.6% quarter over quarter.

Speaker Change: Private nonfinancial sector deposits in foreign currency expressed in pesos fell five 6% quarter over quarter.

Ines Lanusse: BBVA Argentina continues to show strong solvency indicators as of the second quarter of 2024. Capital ratio reached 25.3%. Capital excess over regulatory requirements reached 210.3%.

Ines Blenuse: BBVA Argentina continues to show strong solvency indicators as of the second quarter of 2024. Capital ratio reached 25.3%. Capital excess over regulatory requirements reached 210.3%. The fall in the capital ratio quarter of a quarter is particularly explained by a 16.4% increase in risk weighted assets and by a fall in order a capital of 16.3%. The latter is related to one dividend distribution, which implies the classification to liabilities and its consequent payment, followed by two the impact of OCI in the equity. The increase in risk weighted assets is linked to the real growth in the long portfolio in line with the increase in market risk requirements.

Speaker Change: BBVA, Argentina continues to show strong solvency indicators as of the second quarter of 2024.

Speaker Change: Capital ratio reached 25.3% capital access over regulatory requirements reached 210 points in Britain.

Ines Lanusse: The fall in the capital ratio quarter over quarter is particularly explained by a 16.4% increase in risk-weighted assets and by a fall in ordinary capital of 16.3%.

Speaker Change: The fall in the capital ratio quarter over quarter, its part to totally explained by a 16, 4% increase in risk weighted assets and therefore in order to raise capital of 16 point to enforce that.

Ines Lanusse: The latter is related to 1. Dividend distribution, which implies the classification to liabilities and its consequent payment, followed by 2. The impact of OCI in the equity.

Speaker Change: The latter is related to one dividend distribution, which implied the classification to liability and as concept when payment followed by two they are the most he I any equity.

Ines Lanusse: The increase in risk-weighted assets is linked to the real growth in the loan portfolio in line with the increase in market risk requirements.

Speaker Change: The increase in risk weighted assets is linked to the real growth in the loan portfolio in line with angry market requirement.

Ines Lanusse: As of the second quarter of 2024, total public sector exposure, excluding central bank, totaled 2.5 trillion pesos, increasing 87.7% quarter over quarter, and representing 26.3% of total assets, above the 13.9% in the first quarter of 2024. The quarterly increase is explained by the monetary policy promoted by the government in the aim of removing all remunerated liabilities of the central bank and aiming for that liquidity to migrate to treasury debt.

Ines Blenuse: As of the second quarter of 2024, total public sector extolar excluding central bank total 2.5 trillion pesos, increasing 87.7% quarter of a quarter and represent in 26.3% of total assets, above the 13.9% in the first quarter of 2024. The quarterly increase is explained by the monetary policy promoted by the government in the aim of removing all remunerated liabilities of the central bank and aiming for that liquidity to migrate to treasury debt. This is a reason for a 112.5% higher precision in national treasury debt in place of composed mainly by legups, which by quarter end would reflect the monetary policy rate.

Speaker Change: I saw in the second quarter of 2024, so took public sector exposure, excluding central bank totaled 2.5 premium basis, increasing 87, 7% quarter over quarter.

Speaker Change: Representing 26 point people signed up they'll tell us about that 13, 9% in the first quarter of 2024.

Speaker Change: Quarterly increase is explained by the monetary policy.

Speaker Change: By the government in the aim of removing all revenue related liabilities of the central Bank and Amy for that liquidity, who migrate to treasury desk.

Ines Lanusse: This is the reason for 112.5% higher precision in national treasury debt in pesos composed mainly by LECAPS, which by quarter end will reflect the monetary policy rate.

This is a reason for 112, 5% higher precision national Treasury debt in pesos.

Speaker Change: Composed mainly by the cops, which by quarter end will reflect the monetary policy rate BBVA, Argentina's total securities portfolio, namely the cops until nowhere extend Borden said I thought the second quarter of 2024.

Ines Lanusse: BBVA Argentina's total security portfolio is mainly LECAPS, and to a lower extent, Boncel, as of the second quarter of 2024. As of July 2024, the macro reference rate will be that of the new instrument created by the treasury, LEFIS.

Ines Blenuse: BVL Argentina's total security portfolio is mainly legups and, to lower extent, bond sale as of the second quarter of 2024.

Ines Blenuse: As of July 2024, the macro reference rate will be that of the new instrument created by the treasury, Lefis Letras de Calden Días. In the quarter, the liquidity ratio reached 69.5%, decreasing versus the first quarter of 2024. The liquidity ratio in local and foreign currency reached 61.4% and 88.6%, respectively. The decline is explained by lower precision in repos as well as the real growth in total the profits of 2.6%.

Speaker Change: But as you said before the macro reference rate we'd be that all the new instrument created by the Treasury Murphy lead drug candidates.

Ines Lanusse: In the quarter, the liquidity ratio reached 69.5%, decreasing versus the first quarter of 2024. Liquidity ratio in local and foreign currency reached 61.4% and 88.6% respectively. The decline is explained by lower precision in repos, as well as a real growth in total deposits of 2.6%.

Speaker Change: In the quarter the liquidity ratio reached 69, 5% increasing versus the first quarter of 2024, new tier two ratio no color and foreign currency reached 61, 4% and 88, 6% respectively. The decline is explained by lower 50 Shannon rebels.

Speaker Change: As well as a real growth in total deposits of two 6%.

Ines Blenuse: Last but not least, as of the date of this report, the bank has ended its payment schedule of dividends in three consecutive instruments in cash or cash for 264.2 billion pesos, expressed in December 31st, 2020 currency, and that first one, the central bank regulation, has been adjusted by inflation as of the day of each payment.

Ines Lanusse: Last but not least, as of the date of this report, the bank has ended its payment schedule of dividends in three consecutive installments in cash or cash for 264.2 billion pesos expressed in December 31st, 2023 currency.

Speaker Change: Last but not least as of the date of this report the bank has ended the payment schedule on dividends in particular, the secondhand installments in dashboard pattern for $264 2 million pesos Express in December 31st Huntington's, if the currency I'm the first one.

Ines Lanusse: And the first one, the central bank regulation, it has been adjusted by inflation as of the date of each payment.

Speaker Change: The Central Bank regulation it has to be not adjusted by inflation I saw the day of each page.

Ines Lanusse: These conclude our prepared remarks.

Operator: These concludes our prepared remarks. We will now take your questions. Operator, please open the line for questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speaker phone, please pick up your handset before pressing of the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two.

This concludes our prepared remarks, we will now take your questions. Operator, Please open the line for questions.

Ines Lanusse: We will now take your questions.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.

Operator: Operator, please open the line for questions.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.

Operator: We will now begin the question and answer session.

Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star and then two.

Operator: To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the button.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star and then 2.

Operator: At this time, we will pause momentarily to assemble our roster.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Operator: At this time we will pause momentarily to assemble our roster.

Operator: At this time we are showing no questions.

Operator: At this time, we are showing no questions.

Speaker Change: At this time, we're showing no questions Hi, I would like to turn the conference back over to Mrs.

Ines Lanusse: I would like to turn the conference back over to Ms. Lanusse for any closing remarks.

Ines Blenuse: I would like to turn the conference back over to Miss Lanusse for any closing remarks. Okay, thank you for your time, and let us know if you have further questions. Have a good day.

MS Lynn: MS Lynn you say for any closing remarks.

Ines Lanusse: Okay, thank you for your time and let us know if you have further questions.

Speaker Change: Okay. Thank you for your time and let US know if you have further questions have a good day.

Ines Lanusse: Have a good day.

Operator: The conference is now concluded. You may now disconnect your lines. Have a great.

Speaker Change: The conference has now concluded you may now disconnect your lines have a great day.

Operator: The conference is now concluded. You may now disconnect your lines.

Operator: Good morning, ladies and gentlemen and thank you for waiting.

Operator: Good morning, ladies and gentlemen and thank you for waiting. At this time we would like to welcome everyone to BBVA Argentina's second quarter, 2024 Results Conference Call. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during company presentation. After company remarks are completed, there will be a question and answer section. At that time further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator.

Operator: At this time we would like to welcome everyone to BBVA Argentina's second quarter, 2024 Results Conference Call.

Operator: We would like to inform you that this event is being recorded and all participants will be in listen-only mode during company presentation.

Operator: After company remarks are completed, there will be a question and answer section. At that time further instructions will be given.

Operator: Should any participant need assistance during this call, please press star zero to reach the operator.

Operator: First of all, let me point out that some of the statements made during the conference call may be forward-looking statements within the meaning of the Safe Harbor provisions found in section 27A of the Securities Act of 1933 under U.S. Federal Security's law. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information concerning these factors is contained in BBVA Argentina's annual report on form 20F for the fiscal year 2023 filed with the U.S. Securities and Exchange Commission.

Operator: Federal Security's law.

Operator: These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

Operator: Additional information concerning these factors is contained in BBVA Argentina's annual report on form 20F for the fiscal year 2023 filed with the U.S.

Operator: Securities and Exchange Commission.

Operator: Today with us, we have Miss Carmen Morella-Arollo, CFO, Ms. Ines-Blenuse, IRO, and Ms. Bellin-Forkada, Investor Relations.

Bellin Forkada: Ms. Forkada, you may begin your conference.

Ines Lanusse: Good morning and welcome to VVR Argentina's second quarter 2020 for result conference call.

Ines Lanusse: Today's webinar will be supported by a slide presentation available on our Investor Relations website on the financial information section.

Ines Lanusse: Speaking during today's call will be Ines-Blenuse, our Investor Relations Officer and Carmen Morella-Arollo, our chief financial officer, who will be available for the Q&A session.

Bellin Forkada: Speaking during today's call will be Ines-Blenuse, our Investor Relations Officer and Carmen Morella-Arollo, our chief financial officer, who will be available for the Q&A session. Please note that starting January 1, 2020, as per central bank regulation, we have begun reporting results, applying hyperinflation accounting, pursuant IFRS rules, IAS 29. For instance, from Parability 2020, 2023 and 2024, figures have been restricted to reflect the accumulated effect of inflation adjustment for each period through June 30, 2024.

Ines Lanusse: Please note that starting January 1, 2020, as per central bank regulation, we have begun reporting results, applying hyperinflation accounting, pursuant IFRS rules, IAS 29. For instance, from Parability 2020, 2023 and 2024, figures have been restricted to reflect the accumulated effect of inflation adjustment for each period through June 30, 2024.

Ines Lanusse: Now, let me turn the call over to Ines.

Ines Blenuse: Now, let me turn the call over to Ines.

Ines Lanusse: Thank you, Bellin, and thank you all for joining us today.

Ines Blenuse: Thank you, Bellin, and thank you all for joining us today. In the second quarter of 2024, the significant fiscal consolidation, the relative effects rate stability and the sharp contraction in economic activity have led to a gradual moderation of inflation in recent months. Despite the uncertainty and related risks, according to the VA research, it is likely that these ongoing adjustments eventually complemented by additional measures could set the basis for an inflation slowdown along the year.

Ines Lanusse: In the second quarter of 2024, the significant fiscal consolidation, the relative effects rate stability and the sharp contraction in economic activity have led to a gradual moderation of inflation in recent months. Despite the uncertainty and related risks, according to the VA research, it is likely that these ongoing adjustments eventually complemented by additional measures could set the basis for an inflation slowdown along the year.

Ines Lanusse: On the other hand, although the deterioration of economic activity could be reversed by nearly a year, it is expected that after falling by 1.6% in 2023, GDP will decrease by 4% in 2024, and 135% inflation is expected by 2024 year end with a downward tendency versus 211% as of December 2023.

Ines Lanusse: Now, moving into business dynamics, as you can see on slide 3 of a webcast presentation, a service offering has evolved in such a way that by the end of June 2024, new customers were the physicians to digital channels reach 81% versus 76% a year ago.

Ines Blenuse: Now, moving into business dynamics, as you can see on slide 3 of a webcast presentation, a service offering has evolved in such a way that by the end of June 2024, new customers were the physicians to digital channels reach 81% versus 76% a year ago. The response on the side of customers has been satisfactory and we are convinced this is the path to pursue in the aid of sustaining and expanding our competitive position in the financial system. Retail digital sales measures in units reach 93.1% in the second quarter of 2024 and represent 74% of the bank's total sales measured in monetary value.

Ines Lanusse: The response on the side of customers has been satisfactory and we are convinced this is the path to pursue in the aid of sustaining and expanding our competitive position in the financial system.

Ines Lanusse: Retail digital sales measures in units reach 93.1% in the second quarter of 2024 and represent 74% of the bank's total sales measured in monetary value.

Ines Lanusse: Moving to slide 4, I will now comment on the bank's second quarter of 2024 financial results.

Ines Lanusse: BBVA Argentina, 2nd quarter of 2024 net income was 112.9 billion pesos, increasing 178.8% quarter of a quarter.

Ines Lanusse: This implied a quarterly ROE of 19.5% and a quarterly ROE of 4.7%.

Ines Lanusse: On the other hand, operating income in the second quarter of 2024 was 446.7 billion pesos, 40.3% lower quarter of a quarter. This fall in the quarterly operating result is explained by a lower operating income. Mainly due to one lowering for income, basically due to the decline in the monetary policy rate, two lower results from right down of assets at a mortified cost and a fair value to OTI in particular due to the contrast generated by the sales of CPI linked bonds in the first quarter of 2024 and followed by three higher loan loans allowances in line with the growth in real terms of the loan portfolio.

Ines Blenuse: Mainly due to one lowering for income, basically due to the decline in the monetary policy rate, two lower results from right down of assets at a mortified cost and a fair value to OTI in particular due to the contrast generated by the sales of CPI linked bonds in the first quarter of 2024 and followed by three higher loan loans allowances in line with the growth in real terms of the loan portfolio. Net income for the period was highly impacted by income from net monetary position.

Ines Lanusse: Net income for the period was highly impacted by income from net monetary position.

Ines Lanusse: Inflation on the 2nd quarter of 2024 was 18.6% much lower than the first quarter of 2024, 51.6%.

Ines Blenuse: Inflation on the 2nd quarter of 2024 was 18.6% much lower than the first quarter of 2024, 51.6%. Consequently, the income from net monetary position line recorded a 59.9% lower loss on the previous quarter, having a positive impact in the net income comparison. Turning into the PNL lines is like 5 net income in the 2nd quarter of 2024 was 678.6 billion pesos falling 27.4% quarter of a quarter. In the 2nd quarter of 2024, interest income in monetary terms decreased more than interest expenses.

Ines Lanusse: Consequently, the income from net monetary position line recorded a 59.9% lower loss on the previous quarter, having a positive impact in the net income comparison.

Ines Lanusse: Turning into the PNL lines is like 5 net income in the 2nd quarter of 2024 was 678.6 billion pesos falling 27.4% quarter of a quarter.

Ines Lanusse: In the 2nd quarter of 2024, interest income in monetary terms decreased more than interest expenses. The former fall was due to a lower income from loan, weeples and CPI linked bonds.

Ines Blenuse: The former fall was due to a lower income from loan, weeples and CPI linked bonds. The latter is explained by lower expenses and checking accounts and deposits and events spent accounts. In the second quarter of 2024, in present total 973.3 billion pesos, falling 35.7% compared to the first quarter of 2024. Quarterly degrees is mainly driven by one lower income from loans and two lower income from resources. Both explained by a decline in the monetary policy rates from 80% at the beginning of April to 40% by mid-May and for the rest of the quarter.

Ines Lanusse: The latter is explained by lower expenses and checking accounts and deposits and events spent accounts.

Ines Lanusse: In the second quarter of 2024, in present total 973.3 billion pesos, falling 35.7% compared to the first quarter of 2024.

Ines Lanusse: Quarterly degrees is mainly driven by one lower income from loans and two lower income from resources.

Ines Lanusse: Both explained by a decline in the monetary policy rates from 80% at the beginning of April to 40% by mid-May and for the rest of the quarter.

Ines Lanusse: Also, the decline in the quarter, the inflation costs a decrease in income from CPI link points.

Ines Blenuse: Also, the decline in the quarter, the inflation costs a decrease in income from CPI link points. Interest expenses totaled 294.7 billion pesos, denoting a decrease of 49.1% quarter of a quarter. Quarterly decline is described by lower checking account expenses. In particular, interest variance checking accounts followed by 10 deposits and investment account expenses due to lower rates in line with the deregulation of minimum 10 deposits rate. Interest from 10 deposits, including investment accounts, explained 64.6% of interest expenses versus 47% in the previous quarter.

Ines Lanusse: Interest expenses totaled 294.7 billion pesos, denoting a decrease of 49.1% quarter of a quarter.

Ines Lanusse: Quarterly decline is described by lower checking account expenses.

Ines Lanusse: In particular, interest variance checking accounts followed by 10 deposits and investment account expenses due to lower rates in line with the deregulation of minimum 10 deposits rate.

Ines Lanusse: Interest from 10 deposits, including investment accounts, explained 64.6% of interest expenses versus 47% in the previous quarter.

Ines Lanusse: Net free income as of the second quarter of 2024, total 58.8 billion pesos, falling 1.8% quarter of a quarter. The decline is explained by a greater increase in expenses versus the income in monetary terms.

Ines Blenuse: Net free income as of the second quarter of 2024, total 58.8 billion pesos, falling 1.8% quarter of a quarter. The decline is explained by a greater increase in expenses versus the income in monetary terms. In the second quarter of 2024, the income total 117.7 billion pesos, increasing 90% quarter of a quarter. Improvement in the income is only explained by one rate of the income from credit cards and two greater fee income linked to liabilities mainly account maintenance and abundance.

Ines Lanusse: In the second quarter of 2024, the income total 117.7 billion pesos, increasing 90% quarter of a quarter. Improvement in the income is only explained by one rate of the income from credit cards and two greater fee income linked to liabilities mainly account maintenance and abundance.

Ines Lanusse: On the side of the expenses, these total 58.9% billion pesos, increasing 22.5% quarter of a quarter. These are explained by higher expenses due to processing fees and promotion on debit and credit cards.

Ines Blenuse: On the side of the expenses, these total 58.9% billion pesos, increasing 22.5% quarter of a quarter. These are explained by higher expenses due to processing fees and promotion on debit and credit cards. The second quarter of 2024, loanless allowances increased 30.4% in line with the growth in real terms of the loan portfolio. During the second quarter of 2024, total of rated expenses were 340.8 billion pesos, decreasing 6.6% quarter of a of which 32% were personal benefits cost.

Ines Lanusse: The second quarter of 2024, loanless allowances increased 30.4% in line with the growth in real terms of the loan portfolio.

Ines Lanusse: During the second quarter of 2024, total of rated expenses were 340.8 billion pesos, decreasing 6.6% quarter of a of which 32% were personal benefits cost.

Ines Lanusse: Personal benefits increased 3% quarter of a quarter with wages increasing in line with inflation.

Ines Blenuse: Personal benefits increased 3% quarter of a quarter with wages increasing in line with inflation. As of the second quarter of 2024, administrative expenses fell 4.3% quarter of a quarter. This is mainly explained by one rent to other administrative expenses and the document distribution. The first two are related to an increase in inflation which was higher than the nominal increase of expenses in software licenses and service contracted with the parent company. Regarding the decreasing document distribution expenses, this is due to the contrast generated by the renovation of card plastics in the first quarter of 2024.

Ines Lanusse: As of the second quarter of 2024, administrative expenses fell 4.3% quarter of a quarter.

Ines Lanusse: This is mainly explained by one rent to other administrative expenses and the document distribution. The first two are related to an increase in inflation which was higher than the nominal increase of expenses in software licenses and service contracted with the parent company.

Ines Lanusse: Regarding the decreasing document distribution expenses, this is due to the contrast generated by the renovation of card plastics in the first quarter of 2024. The quarterly efficiency ratio as of the second quarter of 2024 was 55.3% improving versus the 65.4% reported in the first quarter of 2024 and above the 52% reported in the second quarter of 2023.

Ines Blenuse: The quarterly efficiency ratio as of the second quarter of 2024 was 55.3% improving versus the 65.4% reported in the first quarter of 2024 and above the 52% reported in the second quarter of 2023. The quarterly decrease is explained by a greater increase in the denominator than the numerator, especially due to lower quarterly inflation.

Ines Lanusse: The quarterly decrease is explained by a greater increase in the denominator than the numerator, especially due to lower quarterly inflation.

Ines Lanusse: In terms of activity on site 6, private sector loans of the second quarter of 2024, total 3.9 trillion pesos, increasing 23.1% in real time.

Ines Blenuse: In terms of activity on site 6, private sector loans of the second quarter of 2024, total 3.9 trillion pesos, increasing 23.1% in real time. Lones to the private sector in base of increased 24.2% in the second quarter of 2024. During the quarter, growth was driven by a 28.6% increase in discounted instrument followed by a 14.3% increase in credit cards, a 37.3% increase in overdraft and an increase in consumer loans. In all cases, the increment is boosted by genuine growth in real terms of the portfolio levered on the lower market interest rates.

Ines Lanusse: Lones to the private sector in base of increased 24.2% in the second quarter of 2024. During the quarter, growth was driven by a 28.6% increase in discounted instrument followed by a 14.3% increase in credit cards, a 37.3% increase in overdraft and an increase in consumer loans.

Ines Lanusse: In all cases, the increment is boosted by genuine growth in real terms of the portfolio levered on the lower market interest rates.

Ines Lanusse: Lones to the private sector denominated in foreign currency increased 16% quarter of a quarter. Quarterly increased is mainly explained by a 14% growth in financing and pre-financing of exports and a 44% growth in credit cards.

Ines Blenuse: Lones to the private sector denominated in foreign currency increased 16% quarter of a quarter. Quarterly increased is mainly explained by a 14% growth in financing and pre-financing of exports and a 44% growth in credit cards. During the quarter, the retail portfolio grew 19% and the commercial portfolio increased 26.6%. The commercial portfolio represents 54.7% of total portfolio from 44.9% a year ago. As observed in previous quarters, Lones for a folio were impacted by the effect of inflation during the second quarter of 2024, which reached 18.6%.

Ines Lanusse: During the quarter, the retail portfolio grew 19% and the commercial portfolio increased 26.6%.

Ines Lanusse: The commercial portfolio represents 54.7% of total portfolio from 44.9% a year ago.

Ines Lanusse: As observed in previous quarters, Lones for a folio were impacted by the effect of inflation during the second quarter of 2024, which reached 18.6%.

Ines Lanusse: In nominal terms, BVA Argentina managed to increase the retail commercial until the long portfolio by 41.1%, 50.1%, and 45.8% respectively during the quarter. Supposing quarterly inflation levels in all cases.

Ines Lanusse: As of the second quarter of 2024, the total loan and other financing over the plastic ratio was 67% above the 55.9% recorded in the first quarter of 2024 and the 58.2% in the second quarter of 2023.

Ines Lanusse: Total loan participation over total assets is 40% versus 32% in the first quarter.

Ines Lanusse: 34% and a 34% in the second quarter of 2023.

Ines Blenuse: 34% and a 34% in the second quarter of 2023. BVA Argentina consolidated market share of private sector loans, reached 10.54% as of the second quarter of 2024, improving from 9.01% a year ago and sustaining the two digit cities. As of the second quarter of 2024, asset quality ratio keeps a very good performance at 1.8 percent in line with the total loan portfolio growth and the good behavior of both the commercial and retail portfolio.

Ines Lanusse: BVA Argentina consolidated market share of private sector loans, reached 10.54% as of the second quarter of 2024, improving from 9.01% a year ago and sustaining the two digit cities. As of the second quarter of 2024, asset quality ratio keeps a very good performance at 1.8 percent in line with the total loan portfolio growth and the good behavior of both the commercial and retail portfolio.

Ines Lanusse: On the funding side, as of the second quarter of 2024, total deposits reached 5.8 trillion pesos, increasing 2.6% quarter of a quarter.

Ines Blenuse: On the funding side, as of the second quarter of 2024, total deposits reached 5.8 trillion pesos, increasing 2.6% quarter of a quarter. The balance for the third day is market share of private deposits, reached 7.50% as of the second quarter of 2024. Private non-financial sector deposits in pesos, total 4.1 trillion pesos, increasing 6.7% compared to the first quarter of 2024. The quarterly change is mainly affected by a 36% increase in time deposits at 21% increase in saving accounts, offset by a 19% fall in checking accounts, especially non-interest bearing checking accounts. Private non-financial sector deposits in foreign currency, expecting base of 5.6% order over quarter.

Ines Lanusse: The balance for the third day is market share of private deposits, reached 7.50% as of the second quarter of 2024. Private non-financial sector deposits in pesos, total 4.1 trillion pesos, increasing 6.7% compared to the first quarter of 2024. The quarterly change is mainly affected by a 36% increase in time deposits at 21% increase in saving accounts, offset by a 19% fall in checking accounts, especially non-interest bearing checking accounts.

Ines Lanusse: Private non-financial sector deposits in foreign currency, expecting base of 5.6% order over quarter.

Ines Blenuse: BBVA Argentina continues to show strong solvency indicators as of the second quarter of 2024. Capital ratio reached 25.3%. Capital excess over regulatory requirements reached 210.3%. The fall in the capital ratio quarter of a quarter is particularly explained by a 16.4% increase in risk weighted assets and by a fall in order a capital of 16.3%. The latter is related to one dividend distribution which implies the classification to liabilities and its consequent payment followed by two the impact of OCI in the equity. The increase in risk weighted assets is linked to the real growth in the long portfolio in line with the increase in market risk requirements.

Ines Lanusse: The fall in the capital ratio quarter of a quarter is particularly explained by a 16.4% increase in risk weighted assets and by a fall in order a capital of 16.3%.

Ines Lanusse: The latter is related to one dividend distribution which implies the classification to liabilities and its consequent payment followed by two the impact of OCI in the equity.

Ines Lanusse: The increase in risk weighted assets is linked to the real growth in the long portfolio in line with the increase in market risk requirements.

Ines Lanusse: As of the second quarter of 2024 total public sector extolar excluding central bank total 2.5 trillion pesos increasing 87.7% quarter of a quarter and represent in 26.3% of total assets above the 13.9% in the first quarter of 2024.

Ines Blenuse: As of the second quarter of 2024 total public sector extolar excluding central bank total 2.5 trillion pesos increasing 87.7% quarter of a quarter and represent in 26.3% of total assets above the 13.9% in the first quarter of 2024. The quarterly increase is explained by the monetary policy promoted by the government in the aim of removing all remunerated liabilities of the central bank and aiming for that liquidity to migrate to treasury debt.

Ines Lanusse: The quarterly increase is explained by the monetary policy promoted by the government in the aim of removing all remunerated liabilities of the central bank and aiming for that liquidity to migrate to treasury debt.

Ines Lanusse: This is a reason for a 112.5% higher precision in national treasury debt in place of composed mainly by legups which by quarter end would reflect the monetary policy rate.

Ines Blenuse: This is a reason for a 112.5% higher precision in national treasury debt in place of composed mainly by legups which by quarter end would reflect the monetary policy rate. BVL Argentina's total security portfolio is mainly legups and to lower extent bond sale as of the second quarter of 2024.

Ines Lanusse: BVL Argentina's total security portfolio is mainly legups and to lower extent bond sale as of the second quarter of 2024.

Ines Lanusse: As of July 2024 the macro reference rate will be that of the new instrument created by the treasury lefis letras de calden dias.

Ines Blenuse: As of July 2024 the macro reference rate will be that of the new instrument created by the treasury lefis letras de calden dias. In the quarter the liquidity ratio reached 69.5% decreasing versus the first quarter of 2024. The liquidity ratio in local and foreign currency reached 61.4% and 88.6% respectively. The decline is explained by lower precision in repos as well as the real growth in total the profits of 2.6%.

Ines Lanusse: In the quarter the liquidity ratio reached 69.5% decreasing versus the first quarter of 2024. The liquidity ratio in local and foreign currency reached 61.4% and 88.6% respectively.

Ines Lanusse: The decline is explained by lower precision in repos as well as the real growth in total the profits of 2.6%.

Ines Lanusse: Last but not least as of the date of this report the bank has ended its payment schedule of dividends in three consecutive instruments in cash or cash for 264.2 billion pesos express in December 31st 2020 currency and that first one the central bank regulation it has been adjusted by inflation as of the day of each payment.

Ines Blenuse: Last but not least as of the date of this report the bank has ended its payment schedule of dividends in three consecutive instruments in cash or cash for 264.2 billion pesos express in December 31st 2020 currency and that first one the central bank regulation it has been adjusted by inflation as of the day of each payment.

Ines Lanusse: These concludes our prepared remarks we will now take your questions operator please open the line for questions.

Operator: These concludes our prepared remarks we will now take your questions operator please open the line for questions. We will now begin the question and the answer session to ask a question you may press star then one on your touch tone phone. If you are using a speaker phone please pick up your handset before pressing of the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time we will pause momentarily to assemble our roster.

Operator: We will now begin the question and the answer session to ask a question you may press star then one on your touch tone phone.

Operator: At this time we are showing no questions.

Operator: If you are using a speaker phone please pick up your handset before pressing of the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star and then two.

Operator: At this time we will pause momentarily to assemble our roster.

Operator: At this time we are showing no questions.

Ines Lanusse: I would like to turn the conference back over to Miss Lanusse for any closing remarks.

Ines Lanusse: I would like to turn the conference back over to Miss Lanusse for any closing remarks. Okay, thank you for your time and let us know if you have further questions. Have a good day.

Ines Lanusse: Okay, thank you for your time and let us know if you have further questions.

Ines Lanusse: Have a good day.

Operator: The conference is now concluded. You may now disconnect your lines.

Operator: The conference is now concluded. You may now disconnect your lines. Have a great

Operator: Have a great

Q2 2024 Banco BBVA Argentina SA Earnings Call

Request a DemoDemo

BBAR

Banco Bbva Argentina

Earnings